Mindtree rejigs top management

MindTree, Bengaluru-based mid-sized IT company, is going in for a new leadership team. Subroto Bagchi, co-founder, is stepping down as executive chairman, and incumbent chief executive and co-founder Krishnakumar Natarajan has been elevated as chairman. The company has also elevated co-founder and chief financial officer Rostow Ravanan as chief executive.

However, Bagchi would continue to be on the board of the company. The new roles would be effective April 1.

This is the second major leadership rejig at MindTree, founded by 10 former Wipro employees after founder Ashok Soota exited the company in a bitter boardroom in 2011. Soota later founded another IT services firm Happiest Minds. Another co-founder S Janakiraman quit in 2014 to build a cloud computing start-up.

It also announced acquisition of US-based salesforce consulting company Magnet 360 for an undisclosed sum. Mindtree has been active in acquiring companies having specialisation in digital services, which is rapidly growing to become a major source of revenues for IT companies.

Net profit up 7%
MindTree on Monday said its third quarter net profit grew 7.2 per cent to Rs 150.9 crore and revenues 33.2 per cent to Rs 1,214.5 crore, compared with the same quarter last year, as it won more clients in the digital and managed services verticals.

“We saw good revenue growth in Q3 as we continue to strike the right chord with our clients. This broad-based result reflects the ongoing momentum of our key focus areas such as digital and managed services. Those initiatives combined with our recent acquisitions and deal wins are creating a clear path to further our growth trajectory,” Natarajan, CEO and managing director, Mindtree, said in a statement. The board announced an interim dividend of Rs 4 per share on a face value of Rs 10. MindTree also announced a bonus issue to its shareholders.